With your Career rise, invest wise

You’re doing great at your job. Whatever the foreseeable problems, you’re prepared for them. It is a set routine, almost, where you perform optimally, and feel proud of what you are doing. One by one, you’re reaching your career goals and look forward to professional challenges.

But are you prepared for the foreseeable challenges of your financial future, as well?

While today, you are earning more than you require, a few years down the line your requirements might change. You’ll need a bigger house, there will be greater family obligations, and there could be unanticipated emergencies as well. Where will you find the money then? Sure, family, friends and colleagues -- they can chip in for some time. But you will have to pay them back. That could be a significant source of stress. Not if you plan ahead, though. If you invest wisely today, you won’t have to look elsewhere for help, ever.

• Where should I invest’ is a question not to be asked first. Since there’s a humongous variety of financial products from several companies, it is very likely that you would get bedazzled, and either out of exasperation or being bowled by a great sales pitch go out and purchase something totally unsuitable to your needs.

Instead, simplify your queries, like this:

• What do I earn today?
• How much can I save today?
• What are my current financial obligations?
• What could be my future financial necessities?
• How much would I need for various future life events, adjusting for inflation?
• Which financial products best match my future financial requirements?
• Now, how much do I actually ought to save, and where should I invest?

First up, allocate your investments to insurance -- life as well as general, so that any untoward incident does not derail your financial planning.

Next, you should understand How to Invest in Mutual Funds. Direct exposure to stock markets isn’t for the novice, or those pressed for time. If you were to put your investments in the Best Mutual Funds though, your risk is substantially reduced, while your returns are significantly enhanced.

Then, you must make provision for cash reserves. These could be needed for out-of-pocket expenses, or for some immediate requirement. Work out a system where you habitually invest your excess cash into liquid assets, such as gold.

You might at times feel like you’re slashing a bit on your lifestyle, when compared to your peers. But don’t let that urge overrule your fiscal prudence. Live your today well enough but also plan for a tomorrow without any worries. Because tomorrow it won’t matter whether you missed a party or downsized your luxury purchase. What will matter is the confidence of being prepared, for all eventualities.